Example Exercise 22-3 Direct Materials Purchases Budget obj. 4 Landon Awards Co. budgeted production of 47,000 brass plaques in 2015. Brass sheet is required to produce a brass plaque. Assume that 96 square inches of brass sheet are required for each brass plaque. The estimated January 1, 2015, brass sheet inventory is 240,000 square inches. The desired December 31, 2045, brass sheet inventory is 200,000 square inches. If brass sheet costs $0.12 per square inch, determine the direct materials purchases budget for 20Y5. Follow My Example 22-3 Square inches required for production: Brass sheet (47,000 x 96 sq. in.).... 4,512,000 Plus desired ending inventory, December 31, 2045..... 200,000 Total square inches required....... 4,712,000 Less estimated beginning inventory, January 1, 2045 240,000 Total square inches to be purchased. 4,472,000 Unit price (per square inch)..... X $0.12 Total direct materials to be purchased.. $ 536,640 Practice Exercises: PE 22-3A, PE 22-3B PE 22-3B Direct materials purchases budget 4 Magnolia Candle Inc. budgeted production of 74.200 candles in 2014. Wax is required to produce a candle. Assume that right ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 2,500 pounds. The desired December 31, 209, wax inventory is 2.100 pounds. If candle wax costs $4.10 per pound, determine the direct materials purchases budget for 2084